Answer to Question #71586 in Microeconomics for owen

Question

Hi,

What will happen to a supply and demand diagram when there is a rise in price of a substitute good and a labour strike in the industry.

Also, why are some medications not available in the NHS?

Answer 1

With the rise in price of replacement goods, the demand for our goods will increase, and the demand curve shifts to the right, and with the strike of workers the supply will decrease, and the supply curve shifts to the left.